What We’re Reading: Five Key Benchmarks That Could Make or Break Your Practice – Part 1

This is the first article in a series that we read about ensuring a financially vibrant medical practice.  In this installment, the author starts by suggesting a revenue analysis in several parts.  First, is to assess the practice net collection rate, which is recommended to be 97%.  If your practice varies greatly from the benchmark, the culprits could be ineffective billing practices or a specific payor.  The second part of the revenue equation is to scrutinize your overhead.  The writer emphasizes that the MGMA produces cost estimates for various practices, by specialty, so a little research will help you spot areas where your expenses exceed your peers’.

The next major are discussed in this article is measuring productivity, which is done by analyzing the different CPT codes billed and benchmarking against peers.  If you’re like me, your eyes are glazing over from all the math.  But frankly, this is an easy statistic to measure and even delegate to your practice manager who can summarize the bottom line for you. And we can’t underestimate the importance of working smarter, not harder.

In part two of the author’s series, she discusses your practice’s clinical health.  Stay tuned.

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